SEIS

In this lesson

1. 0:00 Seed Enterprise Investment Scheme overview
2. 1:01 SEIS income tax relief and limits
3. 2:07 Capital gains tax reinvestment relief
4. 2:57 Dividend and capital loss treatment

About this lesson

You'll explore the investor eligibility rules, company requirements, and the generous tax reliefs available, including 50% income tax relief on subscriptions up to £200,000 per tax year and capital gains tax exemption on reinvested proceeds. The video covers the key tax consequences that make SEIS attractive despite the higher risk involved. Income tax relief is claimed as a deduction against your tax liability and can be carried back to the previous year, though it cannot create a repayment. Capital gains tax reinvestment relief allows you to defer or exempt gains when proceeds are fully reinvested in SEIS shares. You'll also learn the rules for holding periods—shares held for three years or more qualify for exemption on gains, while losses are always available for offset, and business property relief applies as well. This content is relevant to the Taxation (TX) paper and Advanced Taxation (ATX) module, where investment reliefs and their conditions are examined. Understanding SEIS helps you advise clients on tax-efficient investment strategies and recognise when this scheme is preferable to other relief options.

Duration: 3m